ASIC obtains orders against property developers targeting SMSFs

In a public statement, ASIC said it has commenced civil proceedings and obtained urgent interim orders in the Federal Court against Ms Monica Kaur, MKS Property Investments/Developments Pty Ltd (MKS Property), Paradise Property Group Pty Ltd (Paradise Property) as well as against Mr Sadu Singh, Mr Melvin Paul Singh and Ms Stephanie Lee.

ASIC raised concerns that Ms Kaur may be allegedly providing unlicensed financial advice services and that she, together with the defendants, are involved in promoting and operating an unregistered managed investment scheme.

ASIC alleges the defendants raised at least $11.3 million from around 300 investors during the period 1 March 2017 to 22 September 2020 through MKS Property.

“It is alleged that investors were encouraged to establish a self-managed superannuation fund (SMSF) and invest part or all of their SMSFs or other funds into property investments and developments set up by MKS Property and/or Paradise Property,” the Corporate Regulator stated.

“These funds would be pooled together to invest in property development.”

ASIC also alleges the defendants used investor funds, at least in part, for their own personal use and to pay returns to investors.

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